Scheid Vineyards : Quarterly Financial Statements May 31, 2022

SCHEID VINEYARDS INC. AND SUBSIDIARY

UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

THREE MONTHS ENDED MAY 31, 2022 AND 2021

SCHEID VINEYARDS INC. AND SUBSIDIARY

UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS INDEX

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Unaudited Consolidated Balance Sheets as of May 31, 2022 and 2021 …………...........……….....….….. 3
Unaudited Consolidated Statements of Operations for the Three Months Ended
May 31, 2022 and 2021 ………………….………………………...……………….……......…..…….... 4
Unaudited Consolidated Statement of Stockholders' Equity for the Three Months Ended
May 31, 2022 ………………………………………………………………………………………..…... 5
Unaudited Consolidated Statements of Cash Flows for the Three Months Ended
May 31, 2022 and 2021 ……………….....................................................................................................	6
Notes to Unaudited Consolidated Financial Statements ……………………...…………………………....	7

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SCHEID VINEYARDS INC. AND SUBSIDIARY

UNAUDITED CONSOLIDATED BALANCE SHEETS

MAY 31, 2022 AND 2021

(amounts in thousands, except share data)

			May 31,
		2022			2021
ASSETS
CURRENT ASSETS:
Cash and cash equivalents ….…………………….…………..... $	1,441	$	1,838
Accounts receivable, trade …...…………………………………	8,631			6,282
Accounts receivable, other ………………………………..….…	1,012			531
Inventories ………………………………………………………	54,353			49,193
Supplies, prepaid expenses and other current assets …………....	356			345
Due from Gifft Wine Venture LLC …………………………….		-			466
Total current assets ………………………………………...	65,793			58,655
PROPERTY, PLANT AND EQUIPMENT, net …………...…..	70,502			72,980
NOTE RECEIVABLE - STOCKHOLDER ……………………	5,058			4,565
OTHER ASSETS, net ….……………………………….………..		2,527			2,012
	$	143,880		$	138,212
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt ………………………….…... $	23,344	$	13,081
Current portion of capital lease obligations …..………………...	254			399
Accounts payable and accrued liabilities …….….………............	4,895			4,447
Current portion of other loans …………………………………..	3,731			2,783
Income taxes payable ……………………………………………		1,609			2,189
Total current liabilities ……………………….…………….	33,833			22,899
LONG-TERMDEBT …………………………...……….……....	69,065			69,047
LONG-TERM CAPITAL LEASE OBLIGATIONS ….……….	-			244
OTHER LONG-TERM LOANS ……………………………….	-			948
DEFERRED INCOME TAXES ……………………………...…		2,921			4,215
Total liabilities ……………………………………………..		105,819			97,353
STOCKHOLDERS' EQUITY:
Preferred stock, $.001 par value; 2,000,000 shares authorized;
no shares issued and outstanding ……………….………….…
Common stock,
Class A, $.001 par value; 4,000,000 shares authorized;
781,343 and 763,593 shares outstanding at
May 31, 2022 and 2021, respectively
Class B, $.001 par value; 2,000,000 shares authorized;
132,551 issued and outstanding at
May 31, 2022 and 2021 …..…………..……………………	1			1
Additional paid-capital ………………………………………….	22,988			22,704
Retained earnings ……………………………………………….	26,851			29,933
Less: treasury stock; 467,039 Class A shares at cost at
May 31, 2022 and 2021 ……...………………...……………...		(11,779 )		(11,779 )
Total stockholders' equity ….……………….…………...…		38,061			40,859
	$	143,880		$	138,212

See accompanying Notes to Unaudited Consolidated Financial Statements.

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SCHEID VINEYARDS INC. AND SUBSIDIARY

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

THREE MONTHS ENDED MAY 31, 2022 AND 2021

(amounts in thousands, except per share data)

			Three Months Ended May 31,
			2022			2021
REVENUES:
Cased goods sales ………………………………………....	$	13,016		$	9,602
Bulk wine sales…….……………….………..….................		1,018			723
Winery processing and storage revenues ………………….		948			594
Direct sales revenues …......………….…………..……..…		878			886
Vineyard management revenues …………………...……...		85			88
Other revenues …………………………………………….		1			1
Total revenues ………………………………………..…		15,946			11,894
COST OF SALES ………………………………………..…		(12,379 )		(9,022 )
GROSS PROFIT ……….....……………………………......		3,567			2,872
Sales and marketing expenses …………………...……..…		(3,514 )		(2,809 )
General and administrative expenses ………………….….		(2,184 )		(1,963 )
Interest expense, net …...…………………………….…....		(944 )		(915 )
Gain on sale of vineyards and equipment …………….…..		15			23,757
(LOSS) INCOME BEFORE BENEFIT FROM
(PROVISION FOR) INCOME TAXES …..…………..….		(3,060 )		20,942
BENEFIT FROM (PROVISION FOR) INCOME TAXES		862			(5,866 )
NET (LOSS) INCOME ……....………..….……………...…	$	(2,198 )	$	15,076
NET (LOSS) INCOME PER SHARE ….………………….	$	(2.40 )	$	16.83
WEIGHTED AVERAGE SHARES OUTSTANDING ….			914			896

See accompanying Notes to Unaudited Consolidated Financial Statements.

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SCHEID VINEYARDS INC. AND SUBSIDIARY

UNAUDITED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

THREE MONTHS ENDED MAY 31, 2022 (amounts in thousands, except share amounts)

	Common Stock Outstanding
	Number of		Number of					Additional
	Class A		Class B						Paid-in			Retained		Treasury
	Shares		Shares		Amount			Capital			Earnings		Shares
BALANCE, March 1, 2022.....	763,593	132,551	$	1	$	22,704	$	29,049		$	(11,779 )
Stock issued as compensation	17,750		-			-			284			-		-
Net loss ……...……..…….….	-		-			-			-			(2,198 )		-
BALANCE, May 31, 2022 ….	781,343		132,551		$	1		$	22,988		$	26,851		$	(11,779 )

See accompanying Notes to Unaudited Consolidated Financial Statements.

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